Houston, TX asked in Banking for Texas

Q: I lost my job. I cannot make the car payments. Can I give it back? I have never been late

Related Topics:
2 Lawyer Answers
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: Losing your job and being unable to make car payments is a difficult situation. You have the option to voluntarily return the car to the lender, which is known as a voluntary repossession. This means you give back the car willingly before the lender has to take it back. While this can help you avoid some fees associated with involuntary repossession, it still impacts your credit score.

Before taking this step, contact your lender to discuss your options. Many lenders offer hardship programs or payment deferrals for individuals facing temporary financial difficulties. They may be willing to work out a revised payment plan that is more manageable given your current situation.

If you decide on voluntary repossession, make sure to get all the details in writing, including any fees you might owe after the car is sold. The lender will sell the car to recover the loan balance, but you might still be responsible for any remaining balance if the sale doesn’t cover the full amount. Understanding these details will help you make the best decision for your financial situation.

A: Speak with the lender. The route you contemplate is better than repossession, but it would still be advisable to have a discussion with the lender about what options are available, per the financing agreement. I hope things turn around for the better and you find another job soon. Good luck

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.